MIRA INFORM REPORT

Report Date :

17.06.2013

IDENTIFICATION DETAILS

Name :	NET 4 COMMUNICATIONS LIMITED
Registered Office :	20 B, Abdul Hamid Street, East India House, 3^rd Floor, Flat No. 3E, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.2005
Com. Reg. No.:	21-104025
Capital Investment / Paid-up Capital :	Rs. 28.050 Millions
CIN No.: [Company Identification No.]	U72900WB2005PLC104025
PAN No.: [Permanent Account No.]	AACCN1294J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	IT Service Provider
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1943000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Financially company seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Manoj Kumat Shah
Designation :	Finance Department
Contact No.:	91-9831062313
Date :	14.06.2013

LOCATIONS

Registered Office :	20 B, Abdul Hamid Street, East India House, 3^rd Floor, Flat No. 3E, Kolkata – 700069, West Bengal
Tel. No.:	91-33-22139300
Fax No.:	91-33-42047035
E-Mail :	legal@net4.in
Branch Office :	W – 42, Okhla Industrial Area Phase – II New Delhi – 110020, India

DIRECTORS

As on 26.09.2012

Name :

Mr. Desi Subri Valli

Designation :

Managing Director

Address :

K-34 A, First Floor, Hauz Khas Enclave, New Delhi–11001, India

Date of Birth/Age :

18.11.1972

Date of Appointment :

01.10.2007

DIN No.:

00003942

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72200DL1985PLC022649	NET 4 INDIA LIMITED	Director	01/10/2007	01/10/2001	-	Active	NO
2	U72900WB2005PLC104025	NET 4 COMMUNICATIONS LTD	Managing director	01/10/2010	05/07/2005	15/02/2013	Active	NO
3	U72300DL2007PTC165754	NETREE E-SERVICES PRIVATE LIMITED	Director	12/07/2007	12/07/2007	-	Active	NO
4	U72200DL2011PLC219357	Net4 Network Services Limited	Director	18/05/2011	18/05/2011	-	Active	NO
5	U64200DL2009PTC193950	Pipetel Communications Private Limited	Director	27/09/2012	22/02/2012	09/01/2013	Active	NO

Name :

Mr. Amarjit Singh Sawhney

Designation :

Director

Address :

70, Poorvi Marg, Vasant Vihar, New Delhi- 110057, India

Date of Birth/Age :

02.01.1941

Date of Appointment :

05.07.2005

DIN No.:

00110823

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72200DL1985PLC022649	NET 4 INDIA LIMITED	Whole-time director	01/04/2012	05/01/2000	-	Active	NO
2	U72900WB2005PLC104025	NET 4 COMMUNICATIONS LTD	Director	05/07/2005	05/07/2005	-	Active	NO
3	U72200DL2011PLC219357	Net4 Network Services Limited	Director	18/05/2011	18/05/2011	-	Active	NO
4	U64200DL2009PTC193950	Pipetel Communications Private Limited	Director	27/09/2012	22/02/2012	09/01/2013	Active	NO

Name :

Mr. Jasjit Singh Sawhney

Designation :

Director

Address :

70, Poorvi Marg, Vasant Vihar, New Delhi- 110057, India

Date of Birth/Age :

30.09.1973

Date of Appointment :

05.07.2005

DIN No.:

00111020

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72200DL1985PLC022649	NET 4 INDIA LIMITED	Managing director	01/03/2012	05/01/2000	-	Active	NO
2	U51909DL2000PTC108181	NETWORK 4 BARTER PRIVATE LIMITED	Director	01/04/2003	01/04/2003	-	Active	NO
3	U72900WB2005PLC104025	NET 4 COMMUNICATIONS LTD	Director	05/07/2005	05/07/2005	-	Active	NO
4	U72900DL2003NPL120999	NATIONAL INTERNET EXCHANGE OF INDIA	Additional director	24/09/2009	12/03/2007	24/09/2010	Active	NO
5	U72200DL2011PLC219357	NET 4 NETWORK SERVICES LIMITED	DIRECTOR	18/05/2011	18/05/2011	-	Active	NO
6	U64200DL2009PTC193950	PIPETEL COMMUNICATIONS PRIVATE LIMITED	Director	27/09/2012	22/02/2012	09/01/2013	Active	NO

Name :

Mr. Sandip Kumar Ghosh

Designation :

Director

Address :

205-206, 2^nd Floor, Double Storey, New Rajinder Nagar, New Delhi-10060, India

Date of Birth/Age :

12.05.1951

Date of Appointment :

05.07.2005

DIN No.:

00002765

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72200DL1985PLC022649	NET 4 INDIA LIMITED	Director	01/10/2001	01/10/2001	-	Active	NO
2	U51909DL2000PTC108181	NETWORK 4 BARTER PRIVATE LIMITED	Director	01/04/2003	01/04/2003	-	Active	NO
3	U72900WB2005PLC104025	NET 4 COMMUNICATIONS LTD	Director	05/07/2005	05/07/2005	-	Active	NO
4	U72901DL2006PLC153497	NET 4 TECHNOLOGIES LIMITED	Director	28/09/2007	11/09/2006	10/09/2008	Active	NO

Name :

Mr. Manish Wadhawan

Designation :

Director

Address :

H. No. V-12/3, 1D.L.F. City, Phase-3, Tehsil Gurgaon, District – Gurgaon, Haryana, India

Date of Birth/Age :

24.06.1975

Date of Appointment :

25.09.2008

DIN No.:

00010707

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72200DL1985PLC022649	NET 4 INDIA LIMITED	Director	23/10/1999	23/10/1999	-	Active	NO
2	U72900WB2005PLC104025	NET 4 COMMUNICATIONS LTD	Director	25/09/2008	01/10/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manoj Kumat Shah
Designation :	Finance Department

MAJOR SHAREHOLDERS

As on 26.09.2013

Names of Shareholders	No. of Shares
Net 4 India Limited	2804994
Amarjit Singh Sawhney (Nominee of Net 4 India Limited)	1
Jasjit Singh Sawhney (Nominee of Net 4 India Limited)	1
Sandip Kumar Ghosh (Nominee of Net 4 India Limited)	1
Desi Subri Valli (Nominee of Net 4 India Limited)	1
Swagata Roy (Nominee of Net 4 India Limited)	1
Krishan Kumar (Nominee of Net 4 India Limited)	1
Total	2805000

Equity Share Break up (Percentage of Total Equity)

As on 26.09.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

IT Service Provider

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Travancore, Patparganj Branch, RG Square Mall, Near Max Balaji Hospital, IP Extn, Patparganj, Delhi – 110092, Delhi, India

Facilities :

Rs. In Millions

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Term loans from banks	17.124	36.229
Total	17.124	36.229

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short Term Borrowing
Working capital loans from banks	230.377	140.678
Total	230.377	140.678

Banking Relations :	--
Financial Institutions :	Orix Auto Infrastructure Service Limited, Plot No. 94, Marol Co-operative Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Auditors :
Name :	Avnish Verma and Associates Chartered Accountants
Address :	B 3, Naraina Vihar, School Lane, New Delhi – 110028, India
PAN No.:	AADPV5183G
Holding company :	Net 4 India Limited, India CIN No. : L72200DL1985PLC022649
Fellow Subsidiary company :	Net 4 Network Services Limited, India CIN No. : U72200DL2011PLC219357 NET 4 HK Limited, Hong Kong

CAPITAL STRUCTURE

As on 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2805000	Equity Shares	Rs. 10/- each	Rs. 28.050 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	28.050	28.050
(b) Reserves & Surplus	457.824	374.480
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	94.920	64.993
(b) Deferred tax liabilities (Net)	48.731	37.388
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.557	0.684
(4) Current liabilities
(a) Short term borrowings	230.377	140.678
(b) Trade payables	302.264	226.171
(c) Other current liabilities	163.083	103.777
(d) Short-term provisions	2.237	6.466
TOTAL	1328.043	982.687
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	308.768	270.112
(ii) Intangible Assets	1.522	1.958
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	1.556
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	84.900	36.119
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	181.342	125.918
(c) Trade receivables	424.735	318.449
(d) Cash and cash equivalents	20.928	25.596
(e) Short-term loans and advances	305.848	202.979
(f) Other current assets	0.000	0.000
TOTAL	1328.043	982.687

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		28.050
2] Share Application Money		0.000
3] Reserves & Surplus		306.399
4] (Accumulated Losses)		0.000
NETWORTH		334.449
LOAN FUNDS
1] Secured Loans		197.646
2] Unsecured Loans		47.536
TOTAL BORROWING		245.182
DEFERRED TAX LIABILITIES		33.277
TOTAL		612.908
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		203.589
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	79.755
	Sundry Debtors	253.725
	Cash & Bank Balances	30.919
	Other Current Assets	0.000
	Loans & Advances	207.714
Total Current Assets		572.113
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	84.529
	Other Current Liabilities	27.897
	Provisions	50.377
Total Current Liabilities		162.803
Net Current Assets		409.310
MISCELLANEOUS EXPENSES		0.009
TOTAL		612.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1447.177	1065.994	867.604
		Other Income	5.821	3.627	0.596
		TOTAL (A)	1452.998	1069.621	868.200
Less	EXPENSES
		Purchase of stock in trade	1121.410	843.190
		Changes in inventories of finished goods, work-in-progress and stock in trade	(55.424)	(46.163)
		Employee benefit expenses	23.384	23.499
		Other expenses	58.003	33.566
		TOTAL (B)	1147.373	854.092	670.454
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		305.625	215.529	197.746
Less	FINANCIAL EXPENSES (D)		68.036	37.590	30.373
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		237.589	177.939	167.373
Less/ Add	DEPRECIATION/ AMORTISATION (F)		114.216	74.860	96.579
	PROFIT BEFORE TAX (E-F) (G)		123.373	103.079	70.794
Less	TAX (H)		40.029	35.011	34.821
	PROFIT AFTER TAX (G-H) (I)		83.344	68.068	45.973
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		192.965	124.884	85.234
Add	EXCESS PROVISION OF TAX FOR EARLIER YEAR		NA	0.000	3.690
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.000	3.450
		Proposed Dividend	NA	0.000	5.610
		Tax on Dividend	NA	0.000	0.953
	BALANCE CARRIED TO THE B/S		NA	192.965	124.884
	EARNINGS IN FOREIGN CURRENCY		77.498	NA	NA
	Earnings Per Share (Rs.)		29.71	24.27	16.39

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.49	9.64	8.15
Net Profit Margin (PBT/Sales)	(%)	5.76	6.38	5.30
Return on Total Assets (PBT/Total Assets}	(%)	9.94	10.93	9.12
Return on Investment (ROI) (PBT/Networth)		0.25	0.26	0.21
Debt Equity Ratio (Total Debt /Networth)		0.67	0.52	0.73
Current Ratio (Current Asset/Current Liability)		1.34	1.41	3.51

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-------
26]	Buyer visit details	--------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowing
Unsecured Borrowing	77.796	28.764
Total	77.796	28.764

PERFORMANCE:

Financial Year 2011-12 resulted in a record performance. The Company has scaled new heights and set new benchmarks in terms of sales and profit. The Company persistently remained focused on amplifications of its inherent strengths and opportunities in the domestic market.

The total Income of the Company has been increased to Rs. 1452.998 Millions for the year 2011-12 as compared to Rs. 1069.621 Millions for the previous fiscal year 2010-11, with a boost of 35.84%. The Net Profit after Tax of the Company has recorded a hike 22.44%, touching the figure of Rs. 83.344 Millions in the current year 2011-12 as compared to Rs. 68.068 Millions for the previous fiscal year 2010-11. Earning per Share of the Company has increased to Rs. 2.971 Millions for the year ended 2011-12 as compared to Rs. 2.427 Millions for the previous year ended 2010-11.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72900WB2005PLC104025
Name of the company	NET 4 COMMUNICATIONS LIMITED
Address of the registered office or of the principal place of business in India of the company	20 B, Abdul Hamid Street, East India House, 3^rd Floor, Flat No. 3E, Kolkata – 700069, West Bengal
This form is for	Creation of charge
Type of charge	Immovable Property Book debts Movable property (not being pledge) Others
Particular of charge holder	State Bank of Travancore, Patparganj Branch, RG Square Mall, Near Max Balaji Hospital, IP Extn, Patparganj, Delhi – 110092, Delhi, India patparganj@sbt.co.in
Nature of instrument creating charge	Agreement for hypothecation of goods
Date of instrument Creating the charge	13.04.2013
Amount secured by the charge	Rs. 150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.20% over SBT base rate, effective rate is 14.45% p.a. Terms of Repayment As per sanction letter dated 13.04.2013 Margin Raw material - 25% Stock-in-process-25% Finished goods-25% Receivables (cover 90 days)-25% Extent and Operation of the charge Entire current assets of the company are charged to secure the fund based working capital limit of Rs. 150.00 Millions with one-way interchangeability from cash credit to LC to the extent of Rs. 70.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari-passu charge on the entire current assets of the company, both present and future including documents of titles to goods, book debts along with other consortium members charge on the fixed assets of the company collateral- first pari-passu charge on the residential property at 70, Poorvi Marg, Vasant Vihar, New Delhi-110057 in the name of Mr. Amarjit Singh Sawhney and Mrs. Pawanjot Kaur Sawhney Collateral- first pari-passu charge on 3rd floor, unit 3e, 20B, Abdul Hamid Street, Kolkata in the name of Net 4 Communications Limited

FIXED ASSETS:

• Building
• Furniture and Fixture
• Office Equipment
• Computer Equipment
• Leasehold improvements
• Goodwill

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 57.54
UK Pound	1	Rs. 90.64
Euro	1	Rs. 77.02

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VMT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		S

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.